/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/160901.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, September 1, 2016, Vol. 17, No. 173 Headlines B A H A M A S ULTRAPETROL (BAHAMAS): Releases Quarterly Earnings Results B R A Z I L BRAZIL: Dilma Rousseff Ousted in Historic Impeachment Vote BRAZIL: Financial Markets Mixed After Rousseff's Ouster BRAZIL: Economy Shrinks Again, says WSJ ODEBRECHT SA: Hires Top Brazil Lawyer Munhoz for Restructuring J A M A I C A JAMAICA: Manufacturers Concerned About Continued Slide of Dollar JAMAICA: BOJ Governor Warns of Risks in Credit Expansion M E X I C O MEXICO: July Trade Deficit Wider Than Expected, says WSJ P U E R T O R I C O 26 METAL RECYCLING: Voluntary Chapter 11 Case Summary AEROPOSTALE INC: W. Agin Named Consumer Privacy Ombudsman AEROPOSTALE INC: Sycamore Partners Confirms Bid for Retailer AEROPOSTALE INC: General Growth et al. Said to Bid for 229 Stores AEROPOSTALE INC: Court Refuses to Subordinate Term Lenders' Claims V E N E Z U E L A VENEZUELA: Cracks Down on Opposition Before Massive Rally - - - - - ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): Releases Quarterly Earnings Results ---------------------------------------------------------- Community Financial News reports that Ultrapetrol (Bahamas) Limited released its quarterly earnings results on Aug. 25. The company reported ($0.09) EPS for the quarter. Ultrapetrol (NASDAQ:ULTR) traded down 7.32% on Thursday, Aug. 25, hitting $0.38, according to Community Financial News. The stock had a trading volume of 65,180 shares, the report notes. The company's 50-day moving average price is $0.34 and its 200 day moving average price is $0.28, the report relays. The firm's market cap is $53.48 million, the report discloses. Ultrapetrol has a one year low of $0.05 and a one year high of $0.82, the report adds. Ultrapetrol (Bahamas) Limited is an industrial shipping company serving the marine transportation markets. The Company serves the shipping markets for grain, forest products, minerals, crude oil, petroleum and refined petroleum products, as well as technological products through its container feeder vessels, and the offshore oil platform supply market through its operations in the three segments of the marine transportation industry. As reported in the Troubled Company Reporter - Latin America on Aug. 9, 2016, S&P Global Ratings affirmed its 'D' corporate credit and issue-level ratings on South American shipping company Ultrapetrol (Bahamas) Ltd. =========== B R A Z I L =========== BRAZIL: Dilma Rousseff Ousted in Historic Impeachment Vote ---------------------------------------------------------- Paulo Trevisani & Reed Johnson at The Wall Street Journal report that Dilma Rousseff, a former leftist guerrilla who defied a dictatorship but struggled as Brazil's president, was removed from office following an impeachment trial she condemned as a coup. Far from ending Brazil's months long political crisis, her ouster leaves the country's new leaders facing the same tattered economy and angry, divided electorate that bedeviled Ms. Rousseff, according to The Wall Street Journal. Brazil's Senate voted 61-20 to convict Ms. Rousseff on charges that she used illegal bookkeeping maneuvers to hide a growing budget deficit, deemed an impeachable crime in a nation with a history of hyperinflation and fiscal mismanagement, the report relays. Two-thirds of Brazil's 81 senators, or 54 votes, were needed to remove Ms. Rousseff from power, the report notes. The outcome was widely expected, though only partly because of the legal evidence marshaled against her, the report discloses. Well before the trial's final phase opened, Ms. Rousseff's administration had come under pressure over a brutal recession and a massive corruption scandal at the state oil company that splintered her political base and devastated her popular support, the report says. Her departure marks a humiliating end for Brazil's first female president, and closes 13 years of rule by her leftist Workers' Party, or PT. Interim President Michel Temer, who served as vice president and was among the many former allies to abandon Ms. Rousseff, will finish out her second term, which runs through the end of 2018, the report discloses. Immediately following the impeachment vote, a separate Senate vote failed to reach the two-thirds majority required to ban Ms. Rousseff from holding public office for eight years, the report says. Since he took over as interim president in May, Mr. Temer, known as an adroit backroom deal maker, has installed a new economic team aimed at undoing many of Ms. Rousseff's policies. Brazil's stock market and currency rallied on prospects of her ouster, the report relays. But many analysts say Mr. Temer has a very limited window of opportunity to convince financial markets and fellow politicians that he can pass tough austerity measures to set Brazil back on course, the report notes. Unemployment now stands at 11.6% while inflation is still hovering near 9% after peaking at 10.7% in January. Trade unions and other groups will resist cuts to entitlements such as pensions. Mr. Temer and his party could absorb additional fallout from the Petrobras investigation, the report relays. Moreover, opinion polls show Mr. Temer and Ms. Rousseff are equally disliked by the public, the report discloses. Protesters carrying signs reading "Fora Temer" (Temer Out) popped up at the Rio Games. Regional elected officials, facing municipal elections this fall, will be watching his administration warily, according to the report. "Impeachment does not change this scenario much," said Joao Augusto de Castro Neves, a Eurasia Group analyst, notes WSJ. "It eliminates the risk of Dilma returning, but [Temer] must deal with the real problems of governance," he added. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. BRAZIL: Financial Markets Mixed After Rousseff's Ouster ------------------------------------------------------- Rogerio Jelmayer at The Wall Street Journal reports that Brazil's financial markets closed mixed Wednesday, Aug. 31, after the country's Senate removed President Dilma Rousseff from office. Most investors were expecting her ouster and the confirmation of a more business-friendly politician, Michel Temer, in the country's top political post, according to The Wall Street Journal. "The impeachment was priced by the market in the past weeks and now investors are looking at the challenges ahead faced by Temer," said Newton Rosa, chief economist at Sao Paulo-based asset- management firm Sulamerica Investimentos, the report notes. The Brazilian real closed at 3.2233 to the dollar, according to Tullett Prebon via FactSet, after closing at 3.2450 on Tuesday, Aug. 29, 2016, WSJ says. The benchmark Ibovespa stock index closed down 1.2%, the report notes. So far this year, the Ibovespa is up more than 33%, while the real has gained about 23% against the dollar, making it the world's best-performing major currency in 2016, the report relays. Brazil's Senate voted 61-20 earlier Wednesday, Aug. 31, to remove Ms. Rousseff from office, bringing the months long impeachment process to an end, the report notes. She was the first president in the country's history ousted from office via an impeachment process. Her removal required a two-thirds majority, or 54 of Brazil's 81 senators, the report relays. Now, analysts say Mr. Temer's administration needs to adopt unpopular structural measures, such as overhauls of the pension system and labor market, to help rescue the economy from a deep and prolonged recession, the report adds. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. BRAZIL: Economy Shrinks Again, says WSJ --------------------------------------- Jeffrey T. Lewis and Rogerio Jelmayer at The Wall Street Journal reports that Brazil's economy shrank again in the second quarter, as the service and agriculture sectors retreated, in what economists expect might be one of the last such contractions in the country's current long recession. Gross domestic product shrank 0.6% from the first quarter, its sixth consecutive decline, and contracted 3.8% from the second quarter of 2015, the Brazilian Institute of Geography and Statistics said, according to The Wall Street Journal. That was slightly worse than expected, as the median estimate in a Wall Street Journal survey of eight economists had projected a contraction of 0.5%, says the report. The country's agricultural sector contracted 2% in the second quarter from the first, and 3.1% from a year earlier, while the service sector shrank 0.8% and 3.3%, respectively, the report relays. Two bright spots in the report, however: Investment grew 0.4% from the previous quarter, ending 10 consecutive quarters of contractions, while shrinking 8.8% from a year earlier, and industry expanded 0.3% and shrank 3%, respectively, the report notes. Brazil has been beset by a combination of high inflation and borrowing costs, political paralysis and growing government debt and deficits, which have pushed Brazil into its worst economic downturn since at least the Great Depression, recounts the Journal. Consumer spending has been hit by rising unemployment, which reached 11.6% in the three-month period ended in July, from 8.6% a year earlier, the report discloses. The travails of former President Dilma Rousseff, who was removed from office by a Senate vote that came a few hours after the GDP numbers were reported, sapped business confidence and contributed to a plunge in business investment, the report adds. As reported in the Troubled Company Reporter-Latin America on March 29, 2016, severe contraction that was preceded by several years of below-trend growth has impaired Brazil's (Ba2 negative) underlying economic strength, despite the country's large and diversified economy, says Moody's Investors Service. The country's credit rating is also coming under pressure from the government's high level of mandatory spending. ODEBRECHT SA: Hires Top Brazil Lawyer Munhoz for Restructuring -------------------------------------------------------------- Cristiane Lucchesi at Bloomberg News reports that Odebrecht SA, the once-powerful Brazilian construction firm with BRL110 billion ($35.2 billion) in debt, hired Eduardo Munhoz, founding partner at E.Munhoz Advogados, to help with the "company restructuring process." Mr. Munhoz was hired by the holding company about six months ago and has been working with Odebrecht Agroindustrial on its successful BRL13 billion-real debt restructuring for more than a year, Odebrecht said in an e-mailed statement answering questions from Bloomberg News. The company, which is struggling to find the cash to pay for projects already in its pipeline, is selling assets and "the dialogue with banks continues in a positive way," Odebrecht SA said, Bloomberg News notes. It added that "a bankruptcy filing isn't an alternative." Odebrecht SA is aiming to raise as much as BRL12 billion through divestments to pay down its debt, Bloomberg News notes. In June, the company said it hired Lazard Ltd. to "review its financial strategy and improve the management of its investments," Bloomberg News says. The business generated earnings before interest, taxes, depreciation and amortization of BRL20.8 billion in 2015 and had BRL25.7 billion in cash at the end of last year, it said, Bloomberg News notes. The firm's difficulties started in June 2015, when Marcelo Odebrecht, the conglomerate's former chief executive officer and a controlling shareholder, began serving a 19-year prison sentence on charges of colluding with other builders to pay kickbacks in exchange for lucrative public works contracts in the so-called Carwash Probe, Bloomberg News recalls. The company declined to comment on its shareholder plea bargain agreement. Bloomberg News notes that Mr. Munhoz represented OGX Petroleo & Gas Participacoes SA in the restructuring of $3.6 billion in dollar bonds, the largest corporate debt failure in Latin America until then. Mr. Munhoz also advised on the bankruptcy filing process of the construction company OAS SA. Bloomberg News adds that Mr. Munhoz worked also on the successful restructuring process of building company PDG Realty SA Empreendimentos e Participacoes, which renegotiate BRL3.7 billion, or 60 percent of its gross debt with the banks. ============= J A M A I C A ============= JAMAICA: Manufacturers Concerned About Continued Slide of Dollar ---------------------------------------------------------------- Trinidad Express reports that the Jamaica Manufacturers' Association (JMA) expressed concern at the devaluation of the local currency warning it could lead to reduce competitiveness and increase prices for consumers. "It remains disconcerting that to date, the Jamaican dollar has seen a decline of 5.6 per cent since the start of the year, trading at an average rate of J$127.25 to US$1,00," the JMA said in a statement obtained by Trinidad Express. The Jamaica dollar on Monday, Aug. 29 closed at J$127.44 to one US dollar, up by eight cents, according to the Bank of Jamaica's daily foreign exchange trading summary, the report notes. The JMA said there was need for clear and decisive measures making reference to the impact of a currency's gyrations on an economy is far-reaching, for both consumers and businesses, the report relays. "While it has long been posited that real depreciation will stimulate exports, a move yet to be manifested in the Jamaican context, what is clear is that it affects import dependent industries and consumers in the short term," the report relays. The manufacturers noted the sector is one such industry, where locally produced commodities are becoming more costly and less competitive due to raw materials being sourced overseas, the report says. "While businesses will take measures to reduce the risk posed from fluctuations, such measures will only temporarily mitigate the adverse effects of fluctuations and will prove ineffective in the long term" the JMA said, the report notes. The report says that depreciation will also have an adverse impact on the purchasing power of our consumers, leaving households with less disposable income and also affecting our oil import bill and subsequently electricity rates. If allowed to continue unimpeded, it may fuel speculation, resulting in a loss of business and consumer confidence that does nothing to inspire investment. What is evident is that there must be a discontinuance of 'business as usual'." The JMA advised the Andrew Holness government to reopen the dialogue on the exchange rate regime most suitable for effective currency management at this juncture, and review the current methodology to suit the goals of our macro-economic policy and the economic objectives we want to achieve, the report notes. "We are fully signed on to the fact that we must not only grow our domestic economy but we must also increase our exports substantially. As business people, what we need is a stable dollar and predictability to expand, compete, and create jobs to ultimately grow the economy," JMA said, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2016, Fitch Ratings has upgraded Jamaica's Long-term foreign and local currency IDRs to 'B' from 'B-' and revised the Rating Outlooks to Stable from Positive. In addition, Fitch upgraded Jamaica's senior unsecured Foreign- and Local-Currency bonds to 'B' from 'B-'. The Country Ceiling has been affirmed at 'B' and the Short- Term Foreign-Currency IDR affirmed at 'B'. JAMAICA: BOJ Governor Warns of Risks in Credit Expansion -------------------------------------------------------- RJR News reports that the Brian Wynter, Governor of the Bank of Jamaica (BOJ), has warned of an inflationary impact if there is an imbalance in the growth in private sector credit. Mr. Wynter said there are risks if the expansion in credit is not accompanied by increased production. "Then, you'll see . . .. we are more likely to get an inflationary impact, or an exchange rate and balance of payments problem that then contributes to inflationary impact," Mr. Wynter explained while speaking at the BOJ's quarterly press briefing, according to RJR News. Mr. Wynter clarified, however that there is no need for concern regarding the 14.4% increase in private sector credit during the 12 months to June, declaring that "credit expansion to provide steady growth of businesses that are investing to produce, that creates more output and that is done in a productive way, is not inflationary," the report relays. That, Mr. Wynter said, is what the central bank and its technical teams "will keep gauging as we look at the performance," the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2016, Fitch Ratings has upgraded Jamaica's Long-term foreign and local currency IDRs to 'B' from 'B-' and revised the Rating Outlooks to Stable from Positive. In addition, Fitch upgraded Jamaica's senior unsecured Foreign- and Local-Currency bonds to 'B' from 'B-'. The Country Ceiling has been affirmed at 'B' and the Short- Term Foreign-Currency IDR affirmed at 'B'. =========== M E X I C O =========== MEXICO: July Trade Deficit Wider Than Expected, says WSJ -------------------------------------------------------- Anthony Harrup, writing for the Wall Street Journal, reports that Mexico's ran up a wider-than-expected trade deficit in July as exports of petroleum and manufactured goods fell sharply from a year earlier, partially offset by a decline in imports. The report, citing the National Statistics Institute, said the trade deficit last month was $1.83 billion, smaller than the $2.38 billion gap in July 2015 but wider than June's $524 million shortfall. Exports fell 9% from July 2015 to $29.77 billion, with oil shipments down 22% and factory exports 9% lower. Imports dropped 9.9% to $31.6 billion, WSJ added. The report notes that the deficit was wider than the $1.34 billion median estimate of eight economists polled by The Wall Street Journal, and brought the accumulated trade deficit for the first seven months of the year to $8.94 billion. Petroleum trade accounted for $1.4 billion of the deficit as Mexico exported less crude oil than a year before at a lower price, while gasoline imports continued to rise, according to the report. The Journal recounts that state oil company Petroleos Mexicanos exported 1.146 million barrels a day of crude oil, compared with 1.187 million a year before. The average price was $38.27 per barrel, down from $46.56 in July 2015. Moreover, notes WSJ, exports of manufactured goods fell 9% to $26.88 billion, led by a 10.5% decline in shipments abroad of vehicles and auto parts, which account for almost a third of the country's manufactured exports. In seasonally adjusted terms, exports rose 0.5% from June, while imports rose 0.8%, the statistics institute said, adds WSJ. ====================== P U E R T O R I C O ====================== 26 METAL RECYCLING: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: 26 Metal Recycling Corp. 705 Calle De Castro San Juan, PR 00909-3018 Case No.: 16-06840 Chapter 11 Petition Date: August 29, 2016 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Carlos Rodriguez Quesada, Esq. CERQLAW P O Box 9023115 San Juan, PR 00902-3115 Tel: 787 724-2867 E-mail: cerqlaw@gmail.com Estimated Assets: $0 to $50,000 Estimated Liabilities: $1 million to $10 million The petition was signed by Judith Queliz Jimenez, president. The Debtor did not include a list of its largest unsecured creditors when it filed the petition. AEROPOSTALE INC: W. Agin Named Consumer Privacy Ombudsman --------------------------------------------------------- William K. Harrington, the United States Trustee for Southern District of New York, appointed Warren E. Agin, Esq., a member of Swiggart & Agin, LLC, as the Consumer Privacy Ombudsman in the Chapter 11 bankruptcy case of Aeropostale, Inc., et al. In the Verified Statement, Mr. Agin stated that neither he nor any member of his firm holds or represent any interest adverse to the estate of the debtors. He says he has significant expertise related to service as a privacy ombudsman, with experience in both commercial bankruptcy and online privacy issues, and having written and lectured on issues related to privacy and insolvency since 2000. Mr. Agin's current billing rate is $475 per hour for privacy ombudsman proceedings. Any increases in the billing rate will be provided in a written and filed notice to the Court, the Office of the U.S. Trustee, and any official committee appointed in the case. Mr. Agin may be reached at: Warren E. Agin, Esq. Swiggart & Agin, LLC 197 Portland Street, Fourth Floor Boston, MA 02114 Phone: 617.517.3203 Fax: 617.723.2830 Email: wea@swiggartagin.com About Aeropostale Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. * * * The Bankruptcy Court entered an order establishing (i) July 25, 2016 at 5:00 p.m. (Eastern Time) as the deadline for each person or entity, not including governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as the deadline for governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors. AEROPOSTALE INC: Sycamore Partners Confirms Bid for Retailer ------------------------------------------------------------ The American Bankruptcy Institute, citing Jim Christie of Reuters, reported that Sycamore Partners has confirmed it submitted a bid for Aeropostale Inc after a judge issued an opinion rejecting the teen-focused retailer's attempt to block an offer and blame its bankruptcy on the private equity firm. According to the report, a representative for Sycamore said the firm made an offer for Aeropostale at the retailer's auction but declined to say if the offer was a credit bid. The Troubled Company Reporter, citing The Wall Street Journal, reported that a bankruptcy judge has dealt a big blow to Aeropostale Inc.'s bid to survive chapter 11, refusing to rein in the bidding rights of Sycamore Partners, a former big backer and now major critic of the retailer. According to the report, Judge Sean Lane, in a decision signed Aug. 25 but not made public until Aug. 26, said Sycamore is entitled to wield its $151 million loan as currency at the bankruptcy auction of the retail chain, a so-called credit-bid that gives it an advantage in the competition. The ruling portends bad news for landlords and employees of the teen fashion retailer, which has been at odds with Sycamore since before it filed for bankruptcy protection in May, the report noted. The private-equity firm has said liquidation may be the best outcome for Aeropostale and its stores, and scoffed at the company's hope of a job-saving turnaround, the report related. The credit-bid means Sycamore can walk into the auction without cash, and demand rival bidders pay off the $151 million loan from Sycamore if they want to save, or liquidate, the company, the report further related. Aeropostale said in a statement that it "is disappointed with the Bankruptcy Court's decision in its litigation against Sycamore Partners," the report said. The Troubled Company Reporter, citing WSJ, previously reported That Aeropostale was pressing for a ruling that would rein in Sycamore's power to determine the company's fate. Sycamore has contended liquidation, not a sale of the operating business at a bargain-basement price, is the best option for creditors, the report added. About Aeropostale Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. * * * The Bankruptcy Court entered an order establishing (i) July 25, 2016 at 5:00 p.m. (Eastern Time) as the deadline for each person or entity, not including governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as the deadline for governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors. AEROPOSTALE INC: General Growth et al. Said to Bid for 229 Stores ----------------------------------------------------------------- Jonathan Randles, writing for Bankruptcy Law360, reported that sources told Law360 on Tuesday a group of companies have submitted a leading bid to acquire at least 229 Aeropostale stores. The report noted that, a person familiar with the bid, said the group includes: * retail property management firm General Growth Properties, * apparel brand licensor Authentic Brands Group, * mall owner Simon Property Group, and * retail store liquidators Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC The deal could save the teen apparel retailer and its employees from a complete liquidation, it added. About Aeropostale Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. * * * The Bankruptcy Court entered an order establishing (i) July 25, 2016 at 5:00 p.m. (Eastern Time) as the deadline for each person or entity, not including governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as the deadline for governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors. AEROPOSTALE INC: Court Refuses to Subordinate Term Lenders' Claims ------------------------------------------------------------------ In the case captioned In re: AEROPOSTALE, INC., et al., Debtors, Case No. 15-11275(SHL)(Bankr. S.D.N.Y.), Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York denied the debtors' and debtors-in-possession's motion seeking to: (i) equitably subordinate the claims of Aero Investors LLC and MGF Sourcing Holdings, Limited (together, the "Term Lenders"), pursuant to Section 510(c) of the Bankruptcy Code, (ii) disqualify the Term Lenders from credit bidding in a sale of the Debtors assets, pursuant to Section 363(k) of the Bankruptcy Code, and (iii) recharacterize the Term Lenders claims, pursuant to Section 105 of the Bankruptcy Code MGF has been indirectly majority-owned by an affiliate of Sycamore Partners. The Debtors sought this relief based on their allegations of inequitable conduct by the Term Lenders and certain of their affiliates and the impact on the case of a credit bid by the Term Lenders. As of their bankruptcy filing, the Debtors had outstanding debt obligations of around $223 million, which were secured by substantially all of the Debtorsassets. This debt was comprised of (i) an asset-based revolving credit facility with Bank of America, N.A., and (ii) a term loan with the Term Lenders. The Court held a trial with fourteen live witnesses from August 15 to August 23. In support of its case, the Debtors filed declarations in lieu of direct testimony for six witnesses, together with over 400 accompanying exhibits. In response to the Debtors' case, the Term Lenders presented declarations for seven witnesses, along with some 500 accompanying exhibits. Given the extensive trial record and the applicable law, the Court denied the Debtors' Motion. The Court concluded that there is not a basis to equitably subordinate the Term Lenders' claims, limit their ability to credit bid, or recharacterize their loans. The Court said it is mindful of the high stakes in this case for Aeropostale, but the Court is duty bound to apply the applicable law to the facts of the case, and the Court's equitable powers are not boundless. Touching on the Debtors' alleged bid chillding, Judge Lane noted that the record demonstrates an active interest in the Debtors' assets. This includes parties interested in acquiring the business as a going concern and parties interested in liquidating the assets. A full-text copy of Judge Lane's August 26, 2016 memorandum of decision is available at http://bankrupt.com/misc/nysb16-11275-724.pdf Debtors are represented by: Ray C. Schrock, Esq. Richard W. Slack, Esq. Patrick O'Toole, Jr., Esq. Jacqueline Marcus, Esq. Garrett A. Fail, Esq. Layne S.R. Behrens, Esq. WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Tel: (212)310-8000 Email: ray.schrock@weil.com richard.slack@weil.com patrick.otoole@weil.com jacqueline.marcus@weil.com garrett.fail@weil.com layne.behrens@weil.com Term Lenders are represented by: Robert A. Britton, Esq. KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, NY 10022 Tel: (212)446-4800 Fax: (212)446-4900 Email: robert.britton@kirkland.com --and-- James A. Stempel, Esq. Robert B. Ellis, Esq. Stephen C. Hackney, Esq. Martin L. Roth, Esq. Alec Solotorovsky, Esq. Jeffrey Lula, Esq. KIRKLAND & ELLIS LLP 300 North LaSalle Street Chicago, IL 60654 Tel: (312)862-2000 Fax: (312)862-2200 Email: james.stempel@kirkland.com robert.ellis@kirkland.com stephanie.hackney@kirkland.com martin.roth@kirkland.com alec.solotorovsky@kirkland.com jeffrey.lula@kirkland.com The Official Committee of Unsecured Creditors is represented by: Robert J. Feinstein, Esq. Bradford J. Sandler, Esq. PACHULSKI STANG ZIEHL & JONES LLP 780 Third Avenue, 34th Floor New York, NY 10017 Tel: (212)561-7700 Fax: (212)561-7777 Email: bsandler@pszjlaw.com About Aeropostale Inc. Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. from Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016 the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc. has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schuback as senior vice president, general counsel and secretary. The Debtors listed total assets of $354.38 million and total debts of $390.02 million as of Jan. 30, 2016. The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee hired Pachulski Stang Ziehl & Jones LLP as counsel. * * * The Bankruptcy Court entered an order establishing (i) July 25, 2016 at 5:00 p.m. (Eastern Time) as the deadline for each person or entity, not including governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as the deadline for governmental units to file proofs of claim in respect of any prepetition claims against any of the Debtors. ================= V E N E Z U E L A ================= VENEZUELA: Cracks Down on Opposition Before Massive Rally --------------------------------------------------------- Anatoly Kurmanae, writing for The Wall Street Journal, reports that Venezuela President Nicolas Maduro has intensified a crackdown on opponents ahead of today's major opposition rally to demand a referendum on his rule amid a deepening economic crisis. The actions against opposition parties are raising tensions in a deeply polarized country as thousands of Venezuelans descend on the capital from across the country for what is set to be the biggest antigovernment march in years, says WSJ. According to the report, the opposition is staging the rally to pressure the government to hold a recall referendum. While such a plebiscite is legal under Venezuelan law, the government has been fiercely resisting holding the vote, which polls show would lead to the president's removal and new elections. The crackdown on the opposition comes amid a broader tightening of state controls before the rally, notes the report. In recent weeks, the army has built sandbag encampments with armored vehicles in downtown Caracas and outside the main tunnels connecting the capital's boroughs, a move the opposition says is aimed at disrupting today's rally, or at least preventing the opposition from massing in a single spot. The government, meanwhile, has accused Popular Will of planning to use the rally as an excuse to stage a coup, according to WSJ. Around half of Popular Will's 26 national committee members are now either in jail, exiled or in hiding, according to party lawmaker Juan Guaido, reports WSJ. The crackdown began in 2014 when the party's leader Leopoldo Lopez led the last wave of major antigovernment protests against triple-digit inflation and chronic food shortages, WSJ notes. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2016. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *